CNN –
One news that will come as no surprise to anyone who has felt the pinch is that the global cost of living crisis is far from over. And city dwellers can certainly endure it.
According to the annual Worldwide Cost of Living Index published by the Economist Intelligence Unit (EIU), the average cost of living has increased by 7.4% this year. Food prices rose the fastest.
Although this is slightly less than the 8.1% increase recorded in the same survey in 2022, the numbers are still well above “historical trends”.
But there is good news. Utilities prices, the fastest-rising category in the 2022 survey, showed the lowest inflation this time.
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Zurich, Switzerland (pictured), is tied with Singapore as the most expensive city in the world, according to the Economist Intelligence Unit’s Worldwide Cost of Living Index.
Price increases are slowing as supply chain problems ease since China lifted its Covid-19 restrictions in late 2022.
However, food prices continue to rise as retailers pass on higher costs to consumers.
“We expect inflation to slow further in 2024 as the lagged impact of interest rate hikes begins to impact economic activity and therefore consumer demand,” Upasana Dutt, head of global cost of living at EIU, said in an explanation.
Dutt further warned of the upside risks of armed conflict and extreme weather conditions.
“A further escalation of the Israel-Hamas war would drive up energy prices, while a stronger-than-expected impact of El Niño would drive food prices even higher,” she added.
Rising costs of living have inevitably made life more expensive in many cities – but some are hit harder than others.
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Tel Aviv from Israel is tied for eighth place with Copenhagen from Denmark.
The city-state of Singapore and the Swiss city of Zurich have been named the most expensive cities in the world.
The latter’s rise, which jumped from sixth place on last year’s list, was attributed to the strength of the Swiss franc as well as high prices for food, household goods and leisure items. Singapore’s expensive transportation and clothing were also mentioned.
Although New York tied for first place with Singapore last year, the popular US destination, whose prices rose 1.9% according to the study, slipped to third place, level with Switzerland’s Geneva.
Hong Kong, the only other Asian destination in the top 10, came in fifth place, while Los Angeles was sixth and Paris was named the seventh most expensive city in the world.
Israel’s Tel Aviv shares eighth place with Denmark’s Copenhagen. However, it is worth noting that the survey was conducted before the The Israel-Hamas conflict broke out in October.
Finally, San Francisco, one of three U.S. cities in the top 10, came in 10th.
Doers and doers
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Hong Kong, the “Pearl of the Orient”, came in fifth place on the list of the most expensive cities in the world.
Further down the list, the Russian cities of Moscow and St. Petersburg saw some of the steepest declines, falling 105 places to 142 and 74 places to 147, respectively, in this year’s rankings. The value of the ruble has fallen since Russia invaded Ukraine February 2022 fell significantly.
According to the survey, the slow recovery from the pandemic and “subdued consumer demand” were among the factors that caused Chinese cities such as Beijing, which ranked 34th last year, to fall several places.
Damascus, Syria, remains the cheapest city in the world. Tehran (Iran) and Tripoli (Libya) are also at the bottom, ranking 172nd and 171st, respectively.
The cost of utilities, household assistance, and tobacco products was highest in U.S. cities, while Western European cities were among the most expensive when it came to leisure, transportation, and household goods.
Food and alcohol were most expensive in Asian cities, according to the survey.
The 2023 Global Cost of Living Study surveyed 173 major cities and compared more than 400 individual prices for 200 products and services. It did not include Caracas, Venezuela, where prices have risen 450% since 2022.
1. Zurich and Singapore (draw)
3. New York and Geneva (draw)
5. Hong Kong
6. Los Angeles
7.Paris
8. Tel Aviv and Copenhagen (draw)
10. San Francisco